Did you know that the forex exchange market is much larger than the stock market and considered the largest financial market in the world? No wonder that it has been popular in many countries like Singapore in the past several years. Forex trading is open to anyone, but it is a risky market. As the risk is high, so is the potential for profit. So you should always evaluate yourself if you have the appetite for risk. Trading is not just about obtaining profit, but also about losses. Even the most skilled traders make losses too. If you think you can’t handle it, then Forex might not be for you. Check FXTM review Singapore to learn more.
Who are the forex brokers?
To be able to succeed in the trading business, the relationship between you and your broker is essential. When trading Forex, an investor like you have brokers to serve as the mediator.
They can help you in many ways, such as, provide you access to the platform where the currencies are traded so you can buy and sell different currencies. The brokers will be your salespersons and guide you through the trading process. The brokers can charge a transaction fee that serves as a percentage of your transaction. In Singapore, there are several brokers, and choosing your broker, you need to keep in mind their legitimacy, reliability, and performance.
What are the characteristics should good brokers and platforms have?
Contribute knowledge — As a trader, you need to expand your understanding of the basics and the ins and outs of the industry. It is one of the great foundations of forex trading success. Pick a broker who can provide learning to you to start your trade.
Enables you to experience — Theoretical knowledge is a helpful way to start learning the forex trading market through experience. You can ask the broker to allow you to observe how the trading works. It is to provide you a good understanding of how the industry works. Pick a broker that offers a demo account for beginners. It can also help you develop your strategy when you get to the real thing.
Forex trading is excellent due to the following reasons:
It’s Flexibility
Forex market does not limit the amount of money you can use for trading. Due to its decentralized nature, there is no market regulation — only fraudulent activities and investigation of crime. Trading is 24 hours a day and five days a week, so you won’t need to assume the opening and closing of markets during weekdays. Online platforms, brokers, and money changers are transparent. These make Forex one of the best options for new investors with just enough capital.
A Wide Variation of Trading Options
Instant success isn’t a guarantee for just one currency, but you can trade in an unlimited number of currency pairs with one single currency. If you’re a risk-taker, you have the corresponding options as that of low-risk investors.
It is possible due to the innate liquidity of almost every currency. In just seconds, you can enter and exit the market, and you can obtain profits and lessen losses then.
Low Transaction Costs
Forex transaction costs are lower if you compare it to the stock or futures market. The market’s transparency makes it impossible for brokers, online programs, and money changers, to have a distinct cost from their peers. Market makers can only charge so much until the MAS alerts them of fraudulent and illegal pricing activities.
If you are in Singapore and want to invest in trading Forex, check FXTM invest Singapore.
